JPMorgan is making another meaningful move into crypto – this time with one of Wall Street’s most traditional products.
According to a Wall Street Journal exclusive, the banking giant’s asset-management arm has launched its first tokenized money-market fund, built on the Ethereum blockchain and backed by $100 million of JPMorgan’s own capital. The fund is expected to open to outside investors this week.
For a firm that manages nearly $4 trillion in assets, this is a major signal.
A Familiar Wall Street Product, Rebuilt on Ethereum
The fund is called My OnChain Net Yield Fund (MONY). It runs on Ethereum and is supported by Kinexys Digital Assets, JPMorgan’s internal tokenization platform.
Money-market funds are typically seen as low-risk, conservative vehicles used for cash management. By bringing one on-chain, JPMorgan is applying blockchain technology to the most basic layer of finance.
Client Demand Is Behind the Push
JPMorgan says the decision is being driven by its clients, not by market hype.
“There is a massive amount of interest from clients around tokenization,” said John Donohue, head of global liquidity at J.P. Morgan Asset Management.
“And we expect to be a leader in this space and work with clients to make sure that we have a product lineup that allows them to have the choices that we have in traditional money-market funds on blockchain,” he added.
Regulation Set the Stage
The timing matters.
The Wall Street Journal points out that Wall Street’s tokenization efforts picked up after the Genius Act was passed earlier this year. The law created a clear framework for tokenized dollars, often referred to as stablecoins, and gave institutions more confidence to move on-chain.
JPMorgan’s Ethereum-based money-market fund fits squarely into that shift. Exciting times ahead!
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FAQs
It operates like a traditional money-market fund but uses blockchain to represent shares as digital tokens. This can enable faster, 24/7 transactions and increased transparency for investors.
The move is driven by strong client demand for blockchain-based products and recent regulatory clarity, like the Genius Act, which provides a clearer framework for tokenized dollar assets.
Tokenization rebuilds familiar financial products on a blockchain, aiming to improve efficiency, accessibility, and settlement speed while maintaining the underlying asset’s value and security.
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